Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
You think they will sell out now they have listed shares? Currently worth £57m GBP at Blocks current SP of $125
Block has rallied 27% since the 52 week low on Friday. Closing tonight at near 128. No idea what TSL will do....pay a 5p divi maybe?
Block (NYSE: SQ) stock -- the fintech giant that used to be known as Square and that still trades under Square's ticker symbol -- has notched a tidy 4.7% gain as of noon ET Tuesday. In the first bit of news, Block announced after close of trading yesterday that it has completed its acquisition of buy now, pay later (BNPL) company Afterpay and also launched Square's "first integration with Afterpay" functionality, such that "sellers using Square Online for e-commerce in the United States and Australia" can now offer buyers the ability to buy now and pay in installments. In making its announcement, Block quoted one of its customers praising its success using Afterpay, exulting that "our purchases are nearly 20% larger when shoppers use Afterpay" -- a trend that, if it holds true across other users, should provide a revenue boost not only to Block's customers but to Block itself as it takes its cut of revenue.
Would make sense
Market is only giving it £40m value, yet the holding in Block is currently worth 618,750 x $128 = $79.2m USD, converted to GBP ~58.56m
They already have £7 cash in the bank, so current cash equivalents of £65m, or approx. 65% higher than our current share price (~62p per share) so they could easily sell some shares and do a dividend IF the market keeps them under 40p
Discount to NAV typical of this sort of co. Also, consider directors pay which could take a substantial slab of assets.
I cant see any reason for the company to want to increase the share price. With 30% privately held, I just cant see a reason why the share price would matter to TSL. Hopefully at some point, we get some clarification on the way ahead, but I expect they dont know currently, as Block trading at such a lower price.
Guys don’t lose sight of the fact that Block is still trading at an extreme PE of 100.
I know bears rarely get listed to on these boards (as I’m sure I wasn’t when I pointed out the PE of 140 a few weeks ago) but at the end of the day we’re all in this together.
Companies on high PEs are particularly vulnerable in the face of expected interest rate rises. This is because their valuations are based heavily on expectations of FUTURE cash flows. Higher interest rates increase the discount factor applied to these future cash flows, so the negative impact on high multiple shares is compounded.
I think this helps explain what’s happening here, along with other companies trading on big multiples
Thinksmart are now a holding trust company , discount to Nav is volatile and hence share price.
we could be half this price if the main company gets pressure to see massive upside and why its a gamble now.
We did not need to sell , that's the point and we had a valuation at point of sale valuation.
Hi Arch , you make a popular point re pe, however, mkts are not as simple as that imo or the likes of investments in Boo, Asos etc with low pe would be rising and not sinking consitenty for over a year or two (the mkt clearly does not recognise low pe ! ) .....interest rate rises appear to be somewhat over cooked by mkts are they are still at historically low levels and 0.5 or 0.25% rises should be taken in most companies stride, particularly the large global players...as ever mkts go to extreems at times before finding the middle ground.... invested holders of TSL have a clear value gap to 60p+ on current figures and IF Square/Block rises from it's own lows currently and it forges ahead with it's global plans there is a decent likelyhood of it's sp rising too.
Block does appear to have ambitious plans to serve both retail and wholesale markets and are only now just positioning themselves ...interesting times ahead, there is always a risk things could go a bit lower, however, there is also risk from these lows that things could go markedly higher ;-)
Interesting comment from Terry in the Fundsmith annual report on P/E '..despite the rather sloppy shorthand used by many commentators highly rated P/E does not equate to expensive any more than lowly rated equates to cheap'...
Well one can always make the argument that black is white and a low pe indicates expensive and high cheap lol. Pe is an extremely useful tool. Block at 100 per screams it’s expensive. Maybe Surprise me and explain how it is not. Anyways I see Kinder……a us company is dumping Think…
Hi battersafish, re pe, simply stating that one of the top fund managers states pe is not a guide for expenive or cheap, as per the examples, I would guess he has that view based on managing funds and picking stocks....re Kinder they are indeed selling down and clearly a brake on the sp, I would imagine most investors would have expected this on the basis of current mcap (as I'm sure most will appreciate once below the 100m and 50m quid mcap levels they (ii's) have rules to follow and selling their holdings is one of them, equally they can buy back again once above etc.)
Surprised do we know that’s their reason for selling?
you know better than that Battersea :-)
from here on we are all holders of Square /Block shares....if you feel the pe is a defining aspect it's not a share to hold, if any holders feel that Block will be a major player in the coming months in the sectors they are targetting and envisage a rise in sp from the current lows then it's a hold..no more complicated than that.....all this of course at the discretion of the bod of TSL, who also have a large stake in the same shares so appear allinged with the view of increaed value going forward